The Zimbabwe Revenue Authority (ZIMRA) is extending its reach, and now, health professionals are feeling the pressure. The Medical Laboratory and Clinical Scientists Council of Zimbabwe (MLCSCZ) has issued a directive, mandating that all its registered practitioners provide a valid tax clearance certificate when renewing their annual practicing licenses. This move signals a significant shift in the regulatory landscape for health professionals in Zimbabwe, as it demonstrates the government’s growing focus on ensuring tax compliance across all sectors. The requirement isn’t unique to MLCSCZ, as it follows a similar mandate from the Medicines Control Authority of Zimbabwe (MCAZ), indicating a coordinated effort by regulators to enforce tax laws among professionals.

MLCSCZ Mandates Tax Compliance for Practice Renewal

In its Circular Letter 01/2025, dated 15th January 2025, the MLCSCZ announced that it is now compulsory for registered medical laboratory practitioners to submit a valid tax clearance certificate when they renew their practicing licenses. This new regulation, in line with the Zimbabwe Revenue Authority (ZIMRA)’s Public Notice 92 of 2024, is designed to ensure compliance with tax obligations, and enhance transparency within the medical laboratory profession.

This requirement means that all registered practitioners seeking to renew their annual licenses must demonstrate that they are in good standing with ZIMRA. They must provide a tax clearance certificate that is valid, meaning that it must not be issued more than thirty days prior to its submission. A failure to provide this necessary documentation may result in delays in processing renewal applications, and potential penalties set by ZIMRA. In addition, medical laboratory practitioners who had already collected their 2025 practicing certificates were given until the end of the day on Friday, 31st January 2025, to submit their tax clearance certificates. This demonstrates the seriousness with which the new regulations are being treated.

MCAZ Follows Suit with Similar Compliance Requirements

The MLCSCZ’s move is not isolated, as the Medicines Control Authority of Zimbabwe (MCAZ) has also adopted similar requirements for professionals within its jurisdiction. The MCAZ’s requirement highlights that this is part of a broader strategy by the Zimbabwean government to ensure tax compliance across all registered professionals.

These decisions, by both bodies, indicate a move towards a more rigid system of regulation where professionals must not only be compliant with industry practice but must also be fully compliant with their tax obligations to the state. It’s clear that professional bodies are increasingly playing a key role in enforcing tax regulations.

Why This Focus on Professional Tax Compliance?

The move to enforce tax compliance on professionals through their regulatory bodies is not without its reasons. In recent times, the government has publicly expressed its intention to widen its tax base and improve revenue collection. The informal sector, often characterized by cash transactions, has proven difficult to tax effectively, leaving professionals as an area where compliance can be more easily enforced.

This drive to capture more revenue is a result of the need for more financial resources by the government. The government also continues to be concerned by the large scale of the informal sector and how hard it is to tax. Recent operations and roadblocks have been evidence of this desire for the government to have more tax revenue. This was also seen in the public notice issued by ZIMRA on the Issuance of Clearance Certificates to Professionals.

By requiring professionals to provide tax clearance certificates, the government hopes to address tax evasion and ensure that professionals who are part of the informal economy pay their fair share of taxes. It has also been noted that professionals often engage in cash-based transactions, which are difficult to track for tax purposes. The new regulations are expected to help formalise some of this economic activity, and also improve transparency by making it easier for ZIMRA to keep track of taxable income.

They however is still room for evasion as most of the transactions are still in cash and involve the opaque informal sector.

Potential Implications and Challenges

While the move is intended to improve tax compliance, it also presents potential challenges. For instance, it will likely increase the administrative burden for professionals, who now have to navigate the ZIMRA systems as well as their respective professional bodies’ renewal processes. Also, it’s worth noting that while these measures may promote tax compliance, it is unlikely to completely close the door on tax evasion. Professionals will likely explore various methods of evading the tax system such as underreporting income and other techniques.

Furthermore, it raises questions about how these new compliance requirements will be monitored and enforced. While the MLCSCZ and MCAZ are mandated to ensure compliance, they may encounter difficulties in verifying the accuracy of the submitted tax clearance certificates. There will also likely be issues that could arise from ZIMRA themselves which might lead to a backlog in the issuance of these certificates.

Despite the possible challenges, the requirement for professionals to provide tax clearance certificates underscores a fundamental shift in the relationship between the government, regulatory bodies, and professionals. The new regulations are a clear signal that all professionals, regardless of their area of practice, are expected to contribute to the national treasury through full tax compliance. It remains to be seen how effectively these measures will be implemented and the ultimate impact they will have on the wider economy.

In the meantime, both regulatory bodies encourage all their members to be proactive in ensuring they are tax compliant and that they obtain their tax clearance certificates in a timely manner to avoid disruptions to their practices.
(Image of a Doctor, Nurse or Laboratory Technician could be inserted here)